Credit unions see an Increase in members

December 18, 2009|By KRISTIN BIEN WSBT-TV Reporter

ST. JOSEPH COUNTY — Donald Allen is making a quick trip to the bank. Except, he doesn't bank with a bank. "I think they are honest here. They don't gouge you," says Donald Allen, a credit union member. Allen is not the only one who thinks that way. He and 90 million other Americans are members of a credit union. And that number is on the rise. Nationally, credit union membership went up 11 percent in the third quarter this year. The issue? More people are growing tired of endless bank fees and they are losing faith in bankers whose irresponsible spending have caused financial trouble for the country. "That is why a lot of credit unions are seeing an increase in membership. We are seeing the same thing here in our credit union at Notre Dame," says Leo Ditchcreek the President and CEO of Notre Dame Federal Credit Union. Credit union executives say while banks look to make a profit, credit unions are owned by their members. So credit unions only charge fees to cover costs. "We don't have to pay dividends to the shareholder. We have 62,000 members and everyone owns the credit union," says Ditchcreek. Notre Dame Federal Credit Union has certainly seen an increase in members moving their money. And they say it is a trend they expect will continue. While some of the national banks are getting a bad rap, some local bankers say they are as stable as ever. A spokesperson at 1st Source Bank says they are a community bank. They know their customers and don't try to nickel and dime them. Also, they avoided the trap of sub-prime loans that other big banks fell into. Bauer Financial checks out the strength of banks and credit unions around the nation. It ranks 1st Source Bank for example with five stars, the best rating you can get. Their website is: http://www.bauerfinancial.com